Balrampur Chini Mills’ Rs 3100 crore bioplastic plant to start in upcoming quarter

India’s leading sugar & distillation baron Balrampur Chini Mills Ltd. may commence commercial operations at its upcoming Rs 3,080 crore Poly Lactic Acid (PLA) bioplastic manufacturing plant in Uttar Pradesh during the January-March quarter of FY2026-27.

As per reports, the proposed facility would have with an annual bioplastic production capacity of 80,000 tonnes and is progressing as planned, with construction activities advancing at full pace.

According to the company’s latest investor presentation, the project is expected to become operational in Q4FY27. As of October 15, 2026, the company had already invested nearly Rs 2,400 crore in the project. The capital expenditure is being financed through a combination of equity, debt and internal accruals.

At full production capacity, the PLA facility is expected to generate annual revenue of around Rs 2,000 crore, providing a significant boost to the company’s business portfolio. Balrampur Chini reported total revenue of about Rs 6,300 crore in FY2025-26.

The project also aligns with India’s growing focus on sustainable alternatives to conventional petroleum-based plastics. PLA is a biodegradable bioplastic manufactured using renewable plant-based feedstocks such as sugarcane, corn starch and tapioca roots. It is produced through fermentation and polymerisation processes and can break down naturally without leaving toxic residues.

Balrampur Chini Mills

The company is also eligible for incentives under the Uttar Pradesh Bio Plastic Industrial Policy announced in October 2024.

Headquartered in Kolkata, Balrampur Chini operates 10 sugar factories across Uttar Pradesh, with a combined sugarcane crushing capacity of 80,000 tonnes per day. Its allied businesses include distillery operations with a capacity of 1,050 kilolitres per day and power cogeneration capacity of 175.7 MW.

As part of its diversification strategy, the company has also announced a Rs 160-crore lactogypsum processing plant in Uttar Pradesh. Meanwhile, Balrampur Chini reported a 90% year-on-year increase in consolidated net profit to Rs 102.29 crore for the quarter ended September, compared with Rs 53.89 crore in the corresponding period last year.